ENERAL
AURTIN. Tsxaw W3-711
CRAWFORD C. MARTIS
Ax-rORNEY GENERAL
January 17, 1972
Honorable Robert S. Calvert Opinion NO. M-1043
Comptroller of Public Accounts
State of Texas Re: Refund of portion of
Austin, Texas Texas Motor Vehicle
Sales and Use Tax
paid on amount of
Federal Excise Tax
calculated under re-
pealed United States
Dear Mr. Calvert: Statute.
Your recent letter asks the effect on certain taxes
collected under the Texas Motor Vehicle Sales and Use Tax law
by the recent Act of Congress. This Act repealed the 7%
excise tax on new passenger automobiles as of August 16, 1971
and the 10% excise tax on light-duty trucks of gross weights
of 10,000 pounds or less as of September 23, 1971, on these
vehicles purchased on or after their respective dates. H.R.
10947 was approved by the President of the United States on
December 10, 1971.
The specific question posed by you is quoted as follows:
"Must the State Comptroller refund the State's
portion of the 4% Texas Motor Vehicle Sales Tax paid
on the amount of the Federal Excise Tax when a valid
refund claim is filed by the purchaser of a motor
vehicle?"
Chapter 6, Title 122A, Taxation-General,Vernon's Civil
Statutes, is referred to as the Motor Vehicle Retail Sales and
Use Tax law. Article 6.01 of this Chapter 6 levies a tax
equal to four per cent (4%) of the total consideration paid or
to be paid at retail sale for every motor vehicle sold in the
State of Texas. Article 6.03 of this chapter defines the term
"total consideration" as used therein to mean, insofar as per-
tinent to your question, the amount paid or to be paid for
every motor vehicle sold at retail in this State without s
deduction for the amount of manufacturers' or importers' ex-
else tax imposed upon the motor vehicle by the United States.
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Honorable Robert S. Calvert, Page 2 (M-1043)
Although our State tax accrues on the amount of Federal
excise tax imposed on a sale of a motor vehicle, in the pre-
sent instance there is no Federal excise tax imposed on the
vehicles in question because of the retroactive effect of
the Congressional Act. This Act further provides for re-
funds of any Federal excise tax paid during the periods in
question on the applicable vehicles.
Therefore, your question is answered in the affirmative.
SUMMARY
That portion of the Texas Motor Vehicle Sales
Use Tax paid on the Federal excise tax collected on
retail sales of vehicles since the beginning of the
retroactive effect of the Congressional Act, H.R.
10947, is subject to,a valid claim for refund filed
by purchasers of such vehicles with the State Comp-
troller.
Verytruly yours,
RD C. MARTIN
General of Texas
Prepared by S. J. Aronson
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
W. E. Allen, Co-Chairman
John Banks
Harriet Burke
James Broadhurst
Bob Lattimore
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Honorable Robert S. Calvert, Page 3 (M-1043)
SAM MCDANIEL
Staff Legal Assistant
ALFRED WALKER
Executive Assistant
NOLA WHITE
First Assistant
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